Unknown Story

Updated: 9/8/2021
Unknown Story

Storyboard Text

  • Annual Report
  • IR→high
  • no code of ethicCR→high
  • CR→high no warehouse inspector
  • Official Website Official Website
  • Meeting
  • DR→low materiality→low
  • The auditing team assesses the annual report. The amount of this company's inventory is large, which causes the inventor to easily expire and deteriorate. Moreover, there are a long rainy season in this area, which increases the risk. Alan judges that the inherent risk of the company is high.
  • TOC ↓ST↑
  • Refer to information in official website, Doris and Ben finds there is no code of ethic in this company. Furthermore, this company doesn't have warehouse inspector. The auditing team assesses this company 's control risk is high.
  • The auditing team holds a meeting. Due to the high inherent risk and the high control risk, this company's direction risk is low. So Alan chooses 3% as the materiality.
  • Alan chooses the suitable strategy. This team decreases the test of control and increases the substantive test.
  • Due to the high overall risk, so the auditing team increases the amount of auditors to audit this company.